Nigeria awaits giant leap in ICT
Recent developments in the Nigerian telecommunications industry and the ICT sector in particular are clear indications that the country is waiting for a digitally transformed society after Coronavirus pandemic might have vanished.
THE COVID19 INDUCED stay-at-home and restriction on lifestyle is viewed as a double-edged sword that, despite the agony attached to it, has benefited Nigeria’s movement towards a technology-driven system in an accelerated manner...
THE COVID19 INDUCED stayat-home and restriction on lifestyle is viewed as a double-edged sword that, despite the agony attached to it, has benefited Nigeria’s movement towards a technology-driven system in an accelerated manner.
In addition to this, experts in the country’s ICT sector, who converged recently to dissect the socio-economic impacts of Coronavirus pandemic on the ICT sectors, unanimously saw beyond the agony of a pandemic as they acknowledged how the situation is now serving as a catalyst for digital transformation of the country.
Speaking at the virtual meeting organised by the Association of Telecommunications Companies of Nigeria (ATCON), Kashifu Inuwa Abdullahi , director general of NITDA, said the pandemic has come to show people how convenient it is to perform tasks online.
He said, “We have seen a lot in this crisis but it is important that we see beyond it. At this stage now, the pandemic seems to be losing its potency on us because we are finding alternative ways of doing things
“We at NITDA believe that every challenge has a silver lining and the silver lining in this COVID-19 era is the drive towards improved digital transformation”.
He said this dictates to every stakeholder in the country’s ICT sector to begin quick implementation of digital economy strategy form their various ends.
He added that the policy environment engendered by the Ministry Of Communications and Digital Economy led by Minister Ali Isa Pantami also speaks volume to how much the country should except to leapfrog towards digital solution adoption as a new lifestyle.
Abdullahi also enjoined stakeholders to advance platforms and opportunities that will incubate and promote tech solutions from small and medium enterprises (SMEs) to create employment opportunities that will make up for those who may lose their job to the pandemic.
NCC’s Readiness
The Nigerian Communications Commission (NCC) expressed its willingness to regulate the telecoms sector and ease operations of players to further drive broadband deeper in the country, especially to the unserved and underserved rural areas.
Umar Danbatta, executive vice chairman (EVC) of the NCC who also participated at the stakeholders’ brainstorm assured that all is set for Internet broadband infrastructure companies (InfraCos) to roll out services across the country.
Findings showed that the Infracos that have been licensed to rollout broadband infrastructure in the various geo-political zones include Raeana Nigeria Limited (South-South Zone); O’dua Infraco Resources Limited (South-West Zone); and Fleek Networks Limited (North-West Zone).
Others are Brinks Integrated Solutions (North-East Zone); MainOne Limited (Lagos Zone) and Zinox Technologies Limited (South-East Zone).
To this end, the commission said it is committed to ensuriing the InfraCo licensees visibly roll-out services latest by the end of first quarter of 2021.
The EVC reiterated that the Commission will not rest on its oars for speedy roll out of services by the InfraCos to ensure available, affordable and accessible broadband across the country.
Relief on RoW charges
According to experts, another development that further supports the notion of ‘better days ahead’ for digital transformation is tied to how state governors in the country are becoming considerate with the charges on Right of Ways (RoW).
After years of exorbitantly charging telecoms operators seeking to deploy infrastructure, particularly optic fibre cables, to shore up their respective internally generated revenue (IGR) bases, the state governments are finally softening their approach.
Many of them have normalized the charges from various prices to the N145 per linear metre originally recommended by the federal government, and some others gave 100 per cent waiver to operators or now charge as low as N1 per linear metre.
This move by governors of Ekiti, Imo, Kaduna, Plateau states, and Anambra followed the example of Katsina State Governor, who was the first to sign Executive Order for the reduction of RoW charges to N145 per linear metre, after Lagos State had an initial agreement with telecoms operators to charge a fixed rate of N500 per linear metre on RoW.
Hitherto, some of the RoW charges include: Nasarawa State, N558; Niger State, N1,500; Bauchi State, N1,000; Delta State, N2,705; Imo State, N1,999; Abia State, N3,000; Kwara State, N5,500; Kano State, N2,753; Borno State, N1,650 and Sokoto State, N1,600.
Others are: Kebbi State, N444; Gombe State, N1,500. Zamfara State, N1,695; Adamawa State, N1,500; Jigawa State, N1,500; Rivers State, N3,045; Cross River State, N4,561; Akwa-Ibom State, N1,947; Taraba State, N1,600; Osun State, N5,609; and Anambra State, N3,620.
While waiting for other states to fall in line with what appears to be the new normal with RoW, operators are excited to rollout in states that have either normalized or waived the charges and consequently, broadband for digital transformation will reach the people in the rural areas and at cheaper rates.
Hastening the Process
While operators and federal government arms in the ICT sector commended the governors on the traction recorded so far, operators insist that all is still not in place for the country to attain the digital evolution of its dream.
They have identified the need for the country to recognize protection of telecoms facilities as critical national infrastructure, relief on permits and financial packaging for players.
President Muhammadu Buhari recently advanced a step to protect multi-trillion telecoms investment in the country as he directed security agencies to ensure telecom infrastructure is protected.
However, the Association of Licensed Telecommunication Operators of Nigeria (ALTON), reacting to this directive, lamented it fell short of their expectation of an executive order or passage of Critical National Infrastructure (CNI) Bill by the National Assembly.
Gbolahan Awonuga, the executive secretary of ALTON, said that while the members appreciate governments’ efforts towards solving multifaceted challenges faced by operators, they hope the direction is a step to the executive order.
He hinted that just like in the days of Nigerian Telecommunications Limited (NITEL), when nobody dared move close to telecoms infrastructure because of the decree protecting it, telecom sector today has become the major economy pillar, hence the need for an Executive Order.
Similarly, Olusola Teniola, ATCON president said during the association’s virtual meeting last week that the increase in the contribution of the sector to the economy which hit 14.07 per cent in Q1, 2020 underscores how much more value the sector is ready to create even after the pandemic.
He further said that “ICT players have worked tirelessly as the industry now contributes circa 14 per cent in Q1’2020, so they deserve governments protection to contribute more to the economy.
“There is need for relief on permits and statutory obligations for one year especially for Community Type Networks and/or the introduction of Mobile Virtual Network Operators (MVNO) to increase level of competition to address market gaps, which according to the Universal Service Provision Fund (USPF) is 114.
He also called for encouragement of Nigerian Investment Promotion Commission to grant pioneer tax status to the community type networks and MVNO and other innovations that are introduced to assist in the growth of jobs in the market with a view for more telco companies to list on the Nigerian Stock Exchange (NSE)
On financial package, Teniola said: “The industry deserves some financial package from the Central Bank of Nigeria (CBN) to generate stimulus for continued growth in the industry with a counter-part funding with MDB(s) of at least N250 billion to develop local content in device, low-end equipment assembly or manufacturing of passive infrastructure including towers and related items.”
Last Line
Adjustment to the challenges of Coronavirus pandemic by adopting digital solutions for handling office tasks, learning, business operations and social life is putting Nigeria on a clock of radical changes to brace up for a pending increase in consumption of digital solutions after the COVID-19 pandemic.